The effect of conservation policy and varied open space on residential property values: A dynamic hedonic analysis

We investigate open space value in an ideal setting for a natural experiment between Riverside County, with an open space conservation policy, and neighboring San Bernardino County without the policy. With spatial econometrics, time series and spatial data, this study accounts for both spatial and temporal variation of open space values. The novelty of our paper is that we combine an investigation of the effect of open space proximity on residential property value with an analysis of the effect of endangered species habitat preservation policy distinguishing between types of open space (wild habitat for endangered species versus developed parks) in a two county study. We find that proximity to open space has a positive and statistically significant influence on increased value of residential real estate, with some distinction among type of open space between the counties. Conservation policy for open space with wild habitats contributes to increased value of this amenity in Riverside County.